Farley calls for battery dispute settlement; Ga. governor seeks Biden's help

WASHINGTON -- Ford Motor Co. CEO Jim Farley on Thursday publicly encouraged South Korea's chemicals and electric vehicle battery maker LG Chem Ltd. and SK Innovation Co. to reach a settlement on LG's battery allegations that SK stole trade secrets.

The U.S. International Trade Commission on Wednesday sided with LG Chem, but permitted SK to import components for domestic production of lithium ion batteries for Ford's EV F-150 program for four years, and for Volkswagen of America's EV line for two years.

"A voluntary settlement between these two suppliers is ultimately in the best interest of US manufacturers and workers," Farley wrote on Twitter, adding that "ITC ruling makes way for @Ford to bring to market our groundbreaking electric F-150."

LG Energy Solution and SK Innovation did not have comment on the matter when reached by Reuters on Friday. Volkswagen declined to comment.

The ITC said the decision would allow the automakers to transition to new suppliers for these programs.

LG Chem's wholly owned battery subsidiary, LG Energy Solution, an EV battery supplier to Tesla Inc. and General Motors, praised the ruling on Wednesday.

"SKI's total disregard of our warnings and intellectual property rights gave us no choice but to file this case," Kim Jong-hyun, the CEO of LG Energy Solution, said in a statement.

SK Innovation said on Wednesday it regretted the ITC's decision but noted there was a 60-day presidential review period in which President Joe Biden could decide to reverse the ruling. Biden has made EVs and reducing vehicle emissions a top priority. The White House declined to comment.

VW and Ford previously warned a U.S. legal row between South Korean battery makers could disrupt supplies of the key EV parts and cost U.S. jobs during the COVID-19 pandemic.

Farley said last week on a conference call with analysts that Ford's $22 billion investment in electrification does not include potential investment in battery production, whether through Ford itself or via a joint venture.

Georgia governor weighs in

Meanwhile, Georgia Gov. Brian Kemp on Friday called on Biden to overturn the trade ruling made against SK Innovation, saying the decision would hurt the EV battery maker's plant being built in Commerce, Ga.

"Unfortunately, the International Trade Commission’s recent ruling puts SK’s significant investment in 2,600 clean energy jobs and innovative manufacturing in peril during a pandemic," Kemp said in a statement.

Kemp warned that the long-term prospects for SK Innovation's $2.6 billion battery plant in Commerce would be "harmed significantly." The plant will eventually build batteries for Volkswagen and Ford.

White House officials could not immediately be reached to comment on Kemp's statement.

SK Innovation "can remedy this event by adequately compensating (LG Energy Solution) for their unlawful conduct," Song Jung, counsel for LE Chem unit LG Energy Solution (LGES), said in a statement. "LGES wants to work with Governor Kemp to help the plant and the workers, while upholding the rule of law.”

SK Innovation declined to comment on the governor's statement.